Shareholders of Chinese advertising firm Focus Media (FMCN.NASDAQ, F10.FRA) have launched a lawsuit against the company in a bid to halt a buyout led by US asset manager Carlyle Group (CG.NASDAQ, C6Y.FRA), Bloomberg reported. Iron Workers Mid-South Pension Fund submitted a case to the San Francisco federal court contending the low price of the buyout runs counter to shareholders’ interests, and that parts of the firm’s proxy filing were fabricated and misleading. A group of investors led by Carlyle launched a bid on December 19 to acquire Focus Media for US$3.7 billion. The SEC is conducting an ongoing investigation into Focus Media’s financial activity.
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